Note: Our 1st call for the month of June in DC Plan was on Maruti Suzuki, recommended @ 1500, now trading @ 1538. One can look for target of 1650. Such kind of well researched cash market delivery based calls can help you generate consistent returns of 10-12% or more. Click to know more about our most popular monthly income plan - DOUBLE CIRCUIT PLAN
Let me provide you one such call which can generate safe retruns. The above chart structure is showing a very strong flag breakout for JM Financials. It is a perfectly bullish pattern. The potential of the stock to go towards Rs 35-36 cannot be ruled out. So, we would look at Rs 35-36 as a target price and would look at buying on declines.
If you notice the recent developments in this company, they have given a clear roadmap firstly of their intension of foraying into the banking and secondly of appointing Vikram Pandit as the non-executive chairman whenever they will be getting the bank licenses. Apart from that, induction of Vikram Pandit in the other areas that is increasing the lending business, increasing the stress debt assets, division also with infusion of the capital to the extent of Rs 1,000 crore plus with a minority stake being given to Vikram Pandit, all these things really auger quite well. That means the company which was stagnant for about last two-three years because of the various reasons now seems to be on a takeoff stage. If you really see the price performance of many other finance companies, they have really grown in the last two years while this has remained stagnant.
You can see these sporadic moves once you see the stock moving up by 10-15 percent in couple of days then it takes a pause of about a week or so and again starts moving up. So, longer view is quite positive on the stock. If somebody can keep a view of about 2-4 weeks, one can look for a price of Rs 35-36 in the stock.
Prof Sameer Jain
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